Esaver query?

lilmissmup

Hi,

I have an Esaver with Alliance and Leicester and am putting all my spare cash in there in an aim to pay off my loan early.

Now i knew that you didn't get any interest on the month you withdrew but i was just on the website looking into getting an ISA and spotted the interest rate drops if you make a withdrawal!

Does anyone know how much this would be by? Doesn't seem as good an account now! :rolleyes:

Lavendyr

Well, all that means is that the overall annual equivalent rate (AER) will drop, because in one month you didn't earn any interest. So if you earned 6.5% interest for 11 out of 12 months, but in 1 month you earned 0% interest (because you made a withdrawal), the AER will be lower than 6.5% (somewhere around 5.9% I estimate).

milocoon

If you withdraw in July there is no loss in interest BTW !
Otherwise its a loss of one months interest, I keep a float in a PlusSaver as well for eventualities !

Lavendyr

By the way, there are better rates with instant access/no penalty than the PlusSaver - check out Martin's article on top saving accounts to find a better rate.

chesky369

"...there are better rates with instant access/no penalty than the PlusSaver "

according to Martin, the only one better than A&L is Knautthing (or however you spell it), so it's pretty good.

lilmissmup

I am planning to withdraw it all in June most likely, if its just the month you loose thats fine, thanks everyone for the clarification.

Lavendyr

chesky369 wrote: »

"...there are better rates with instant access/no penalty than the PlusSaver "

according to Martin, the only one better than A&L is Knautthing (or however you spell it), so it's pretty good.

You're talking about the ESaver, not the PlusSaver. The ESaver is 6.5% but the PlusSaver is just 5.5%. I can name you several banks and BSs that offer a better rate than that.

chesky369

the OP said they have an e-saver which is what we were both talking about.

Lavendyr

chesky369 wrote: »

the OP said they have an e-saver which is what we were both talking about.

I'm sorry, that's not correct - please re-read the relevant posts.

milocoon wrote: »

If you withdraw in July there is no loss in interest BTW !
Otherwise its a loss of one months interest, I keep a float in a PlusSaver as well for eventualities !

Lavendyr wrote: »

By the way, there are better rates with instant access/no penalty than the PlusSaver - check out Martin's article on top saving accounts to find a better rate.

chesky369 wrote: »

"...there are better rates with instant access/no penalty than the PlusSaver "

according to Martin, the only one better than A&L is Knautthing (or however you spell it), so it's pretty good.

Lavendyr wrote: »

You're talking about the ESaver, not the PlusSaver. The ESaver is 6.5% but the PlusSaver is just 5.5%. I can name you several banks and BSs that offer a better rate than that.

The Esaver, as I said, is a good rate of interest at 6.5%. The PlusSaver, however, which one poster above said he was using as a 'float' for easy access cash, is not as good as many other instant access, penalty-free deposit accounts. That was what I was trying to explain.

chesky369

you are correct EXCEPT that milocoon was not the OP - that was lilmissmup - and that's who I was replying to.